Govt. monitoring revenue collection, expenditure to reduce fiscal deficit: Senate told

295
File Photo

ISLAMABAD Aug 30 (APP) Minister for Law and Justice Zahid Hamid
informed the Senate that government is monitoring revenue collection
and expenditure on monthly basis in order to reduce fiscal deficit,
which will help to reduce loans.
In the question hour, he said, the government is taking various steps
to reduce borrowings.
Sharing the measures taken by the government, he said, government
borrowing for budgetary support from Scheduled Banks is being shifted
from short-term to long-term, which will result in less reliance on
SBP borrowing.
Privatization of various Public Sector Enterprises is under process
and ninety percent of revenue collected through privatization would be
used for debt retirement.
Taking the advantage of the low inflation and low interest rate, he
said, the government has pursued the policy of shifting the borrowing
from SBP to Commercial Banks and resultantly during the last 3 years,
cumulative borrowing from SBP is (minus) -Rs. 749 billion.
As per Federal Responsibility and Debt Limitation (FRDL) Act, 2005,
he said, the government is committed to reduce Federal Fiscal deficit
to 4% of GDP during the 3 years beginning from 2017-­18 and
maintaining it at maximum of 3.5% of GDP.
He expressed the hope that this would slow down the pace of public
debt accumulation and improve revenue balance.